J.B. Hunt Profit Slides on Slowing Freight Demand

Fourth-quarter earnings per share of $1.92 were short of analyst expectations of $2.44 per share.

Operating income in the Lowell, Ark.-based company’s intermodal segment, which moves goods in a combined truck and rail transport, fell 8% to $179 million as declining volumes and higher labor, maintenance and insurance costs offset an 11% increase in revenue.

“Demand for intermodal capacity was seasonally weak in the fourth quarter, while rail velocity and performance made further progress,” the company said.

Shares were up 5.4% to $185.83 in morning trading Wednesday.

The steepest revenue decline came in J.B. Hunt’s Integrated Capacity Solutions unit, which matches freight loads to trucks. Revenue at the freight brokerage operation fell 33% from the previous year’s fourth quarter on sharply lower volumes and the business reported a $2.9 million operating loss.  

The company said Wednesday it is awarding almost $9 million in what it called “appreciation bonuses” to employees after a year in which it totaled $969.4 million net profit, about 27% more than it reported in 2021.

“Our people are our difference makers, and the employees receiving these appreciation bonuses have been essential in helping deliver value for our customers over the past year,” said

Shelley Simpson,

president of J.B. Hunt, in a statement.

Write to Paul Page at [email protected]